Response to the following problem:
Setsail Hospital purchased $100,000 face value of XYZ Company bonds at 104 percent on May 1, 20X1. Brokerage and other acquisition costs were $280. These bonds pay 7.5 percent interest per year, payable semiannually on April 1 and October 1. The maturity date of the bonds is April 1, 20X6. It was management's intent to hold these securities as long-term investments, but on January 1, 20X2, 40 percent of the bonds were sold at 106 percent and accrued interest, less brokerage fees of $310.
Required: Prepare all necessary entries relating to this investment from May 1, 20X1, through January 1, 20X2.